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General Financial Guidelines
1. Lend money knowing that there is high chance you may not get it back.
Bottom line, don't lend money you cannot afford to lose.
2. If people are already talking about it, then you are too late to invest in it.
3. Never buy products or services over the phone.
4. Making money is more important than saving money.
Many people will argue against me on this. My reason is you can only save what you
have which is limited. You can make unlimited amounts of money though. Saving money
does not make you smarter or add value to your finances. Making money adds value
and therefore, you can continue to make money constantly.
5. Never buy products over the internet from an unknown vendor. Internet product
risk the possibility of losing through the mail. You do not know what the product
really looks like and you need know whether the company you purchased the product
from will assist you if something goes wrong.
6. If you make a lot of money, then you should start your own side business. Starting
your own business is the best way to claim tax deductions. Starting your own business
will teach you things even if the business fails. It may also be good source security,
if you ever lose your job.
7. Always make enough to invest in yourself and the unexpected. The younger you
are, the more you need to invest in yourself. If you do not invest in yourself,
your skills may deteriorate and you may lose your job.
8. The best investment you can make is to improve your skills and find ways to add
more value to your clients. Forget the stock market. Forget the real estate industry
that claims to never lose because it has. By investing your own skills and adding
value to your clients, you will protect your job and increase your salary.
9. There is no such thing as job security. In this day and age, everything moves
so quickly and adapting to new environment is a must. No one can afford to protect
you if you don't have any marketable skills. Never rely on someone else to protect
you. The world will turn with or without you.
10. Don't budget. If you have to budget, then you are either spending too much or
not making enough. You should make enough money that you have plenty of room to
not have to budget. This extra room allows you to store money away for emergency
and find ways to invest even more. If you notice this room is shrinking, then
spend less. Watch what you spend and always find ways to get more for less. Budgeting
is too restrictive and time-consuming. It does teach you to spend less for
more, but tells you what you are spending which I do not find that valueable.
11. If you get into too much debt, don't be afraid to claim bankruptcy. Bankruptcy
isn't as bad as it sounds. There are ways to get out of the seven year record and
you can still find ways to buy stuff even a car. Lenders are willing to lend you
money if they see you have changed.
12. Live rich and die broke. Not live broke and die rich.
